Strong Backlogs in Some Sectors. Stalled Projects in Others.

Construction activity remains strong in data centers, power generation and select civil work. In many other sectors, high borrowing costs, rising material prices and labor shortages continue to delay projects.

The Q2 2026 Construction Economic Report breaks down the numbers behind these conditions. Contractors can use the data to inform bidding, backlog, hiring and cash flow decisions as they plan for the rest of 2026 and into 2027.

Report Highlights:

  • Demand Varies Widely by Sector: Data centers, power generation and certain civil projects continue to drive work. Residential, education, healthcare and advanced manufacturing projects remain more sensitive to financing costs.
  • Construction Material Prices Hit a New High: The Construction Materials Price Index rose 9% year over year through June. Copper, steel, aluminum, transformers and electrical components continue to cost more or take longer to source.
  • Interest Rates Continue to Delay Projects: Elevated Treasury yields are keeping mortgage and commercial borrowing rates high. Some owners, developers and homebuilders are waiting for better financing conditions before moving forward.
  • Skilled Labor Remains Tight: The construction industry had more than 350,000 open positions in the latest reading. Retirements and a limited supply of skilled workers are making it harder to staff current jobs and prepare for new work.

The report also compares construction potential across major U.S. markets, including Kansas City, Wichita, Northwest Arkansas, Little Rock, Oklahoma City and Tulsa.

Download the Full Report Here

Economic conditions can affect everything from job costing and cash flow to bonding capacity and growth plans. The Adams Brown construction team can help you understand what the numbers mean for your business and plan accordingly.

Contact the Adams Brown construction team today!